31 March 2011 21:26 [Source: ICIS news]
HOUSTON (ICIS)--Brazil’s ethanol exports will continue to fall in 2011, industry group Unica said on Thursday, predicting exports from centre-south mills will shrink by at least 18% in the new harvest that starts in April.
The centre-south accounts for around 90% of Brazil’s ethanol production.
Unica said centre-south mills would have 1.45bn litres of ethanol available for exports in 2011-2012, down from 1.77bn litres in the 2010-2011 sugarcane harvest.
Ethanol exports from Brazil in 2009-2010 totalled 2.8bn litres, but shipments dropped sharply last year because of a closed arbitrage window with the US.
Tight supply and an unfavourable exchange rate also limited Brazilian exports.
The expected drop in exports this year could put Brazil behind the US as the world’s top ethanol exporter.
The US exported a record 350m gal (1.3bn litres) of ethanol in 2010, according to data from industry group Renewable Fuels Association (RFA), which has touted the figure as a sign that the US industry has gone global.
The US has shipped the biofuel to Mexico, Canada, Europe, the Middle East, and more recently to Brazil.
US ethanol exports will likely grow in 2011 because supply will outpace demand, a market source said.
The US already is the world’s largest ethanol producer, making twice as much of the biofuel as Brazil.
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